Imposition of a 0.4% tax on the sale of immovable property and shares
Back in February 2021, the law regulation the levying of a 0,4% tax on all sales of immovable property with the proceeds aiming to financially support Greek Cypriot refugees, was published in the Official Gazette by amending the provisions of the Central Agency for Equal Distribution of Burdens Law.
In accordance with that, all transfers, and sales of immovable property and/or shares of a company – if that company owns immovable property either directly or indirectly- which are not listed on any recognized stock exchange and that directly or indirectly owns immovable property, a tax of 0.4% will be paid by the Seller of the property or the Shareholder.
The collected funds will go into a central fund managed by the Central Agency for the Equal Distribution of Burdens, the state agency assisting Greek-Cypriot refugees created after the Turkish invasion.
The fee will be paid for 2 categories of transactions, for the sale of immovable property, on the selling price and for the selling of shares of a company, on the last appraised price of the immovable property by the Department of Lands and Surveys, corresponding to the shares sold.
It is noted that it was announced from the Tax Department that they will allow reasonable period of time to settle the relevant obligations without imposing any monetary penalties.